Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Controladora Vuela Compania de Aviacion, with five holds, four buys and two sells. The average 12-month price target is $9.08, compared with a recent share price of $7.62.
• The airline reported a quarterly loss of $1.11 per share, slightly worse than the $1.08 consensus estimate, while revenue of approximately $859.3 million exceeded expectations. Analysts anticipate a full-year loss of $2.07 per share.
• The stock shows significant financial risk, including a debt-to-equity ratio of 6.78, negative net margin and negative return on equity; institutional investors collectively own 53.32% of outstanding shares.

Shares of Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE:VLRS - Get Free Report) have received an average recommendation of "Hold" from the eleven analysts that are presently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating and four have issued a buy rating on the company. The average 1-year price target among brokers that have covered the stock in the last year is $9.0778.

Several equities research analysts have weighed in on the company. The Goldman Sachs Group lowered Controladora Vuela Compania de Aviacion from a "buy" rating to a "neutral" rating and set a $7.60 price objective on the stock. in a research report on Monday, April 13th. Barclays decreased their target price on Controladora Vuela Compania de Aviacion from $10.00 to $9.00 and set an "overweight" rating for the company in a report on Thursday, April 30th. Itau BBA Securities lowered Controladora Vuela Compania de Aviacion from a "market perform" rating to an "underperform" rating and set a $7.40 price target for the company. in a research note on Thursday, May 7th. JPMorgan Chase & Co. cut their price target on shares of Controladora Vuela Compania de Aviacion from $10.50 to $9.50 and set a "neutral" rating on the stock in a report on Friday, June 12th. Finally, Jefferies Financial Group assumed coverage on shares of Controladora Vuela Compania de Aviacion in a research report on Thursday, June 18th. They set a "hold" rating and a $10.00 price objective on the stock.

Controladora Vuela Compania de Aviacion Stock Performance

Controladora Vuela Compania de Aviacion stock opened at $7.62 on Monday. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 6.78. The firm has a market cap of $887.91 million, a P/E ratio of -4.64 and a beta of 1.72. Controladora Vuela Compania de Aviacion has a 1-year low of $5.23 and a 1-year high of $10.80. The firm has a 50-day moving average of $8.09 and a 200-day moving average of $8.24.

Controladora Vuela Compania de Aviacion (NYSE:VLRS - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The transportation company reported ($1.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($1.08) by ($0.03). The business had revenue of $859,266 billion for the quarter, compared to analysts' expectations of $854.70 million. Controladora Vuela Compania de Aviacion had a negative net margin of 5.71% and a negative return on equity of 93.91%. Sell-side analysts expect that Controladora Vuela Compania de Aviacion will post -2.07 EPS for the current year.

Insider Activity at Controladora Vuela Compania de Aviacion

In other news, Director William Dean Donovan sold 50,000 shares of Controladora Vuela Compania de Aviacion stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $7.54, for a total transaction of $377,000.00. Following the sale, the director owned 2,946,050 shares of the company's stock, valued at approximately $22,213,217. The trade was a 1.67% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Institutional Trading of Controladora Vuela Compania de Aviacion

Institutional investors and hedge funds have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership raised its holdings in Controladora Vuela Compania de Aviacion by 48.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,720,522 shares of the transportation company's stock worth $12,353,000 after purchasing an additional 565,250 shares in the last quarter. Millennium Management LLC lifted its position in Controladora Vuela Compania de Aviacion by 126.5% during the fourth quarter. Millennium Management LLC now owns 990,495 shares of the transportation company's stock valued at $8,796,000 after buying an additional 553,251 shares during the period. Jump Financial LLC bought a new stake in shares of Controladora Vuela Compania de Aviacion during the 2nd quarter valued at $1,611,000. Walleye Capital LLC boosted its holdings in shares of Controladora Vuela Compania de Aviacion by 100.6% during the 4th quarter. Walleye Capital LLC now owns 527,323 shares of the transportation company's stock valued at $4,683,000 after buying an additional 264,446 shares in the last quarter. Finally, Dorsey Wright & Associates bought a new stake in shares of Controladora Vuela Compania de Aviacion during the 1st quarter valued at $1,840,000. 53.32% of the stock is currently owned by hedge funds and other institutional investors.

Controladora Vuela Compania de Aviacion Company Profile

Controladora Vuela Compañia de Aviacion, SAB de CV NYSE: VLRS is a Mexico-based airline holding company whose primary business is the operation of low-cost scheduled air transportation services. Through its principal operating subsidiary, Volaris, the company provides passenger and cargo flights on domestic and international routes. Its business model emphasizes unbundled ancillary services and point-to-point operations designed to offer competitive fares across its network.

Volaris serves more than 120 routes linking major metropolitan areas and secondary cities in Mexico, the United States and Central America.

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